Part a Fresh Linen Ltd is considering investing 50,000 in new laundry dryers and considering the financial viability of this investment. The company requires an 8% rate of return. The arise at the end of each year and ignore cash flows arising after this five-year period. the cash flows Year E 123 4 5 10,000 25,000 25,000 20,000 10,000 The dryers will have a zero scrap value at the end of the project. Calculate the following in relation to the investment in the new dryers: (i) Net present value (ii) Payback period (7 marks) (3 marks) Drawing on your results, advise Fresh Linen Ltd as to whether they should invest in the dryers. (2 marks) Part b Explain how budgets and budgetary control assist management to achieve the business' strategic and operational objectives. Include in your explanation any problems that might arise for managers when using budgetary control. (8 marks) (Total for Question 5: 20 marks) (Continued.../) Page 7 of 8